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Reconcile a Bank Statement

 

         

 

 

How do I reconcile a bank statement?

Transactions from Accounts Payable, Payroll, General Ledger and other applications all feed into the Bank Reconciliation page. This Step-by-Step Tutorial guides you through the process of reconciling those transactions to your monthly bank statement (as well as the General Ledger), entering a missing transaction, and then finalizing the reconciliation process.

 

For more detailed information on these features, see the Bank Statements > Reconciliation Help page.

 

For a visual tutorial, see the Reconcile a Bank Statement  video.

All video tutorials can be viewed from the Tutorials & Videos page.

 

 

Step-by-Step

 

1. From the Bank Account Management menu, Select Manage -> Bank Statements.

 

2. Click the Add New Statement link.

 

3. Enter the Statement Date and the Statement Ending Balance for the bank statement you want to reconcile and then click the OK button.

 

4. Mark an item as cleared by checking the box next to it.

 

5. To reconcile using an electronic bank statement, click the Import Electronic Bank Statement link.

 

6. The Import Electronic Bank Statement window appears. Click the Choose File button.

NOTE: Accepted formats are Quicken(QIF), Open Financial Exchange (OFX), Intuit (QFX), and Excel (XLSX) files. See the Import Electronic Bank Statement section for more details on accepted file formats.

 

7. Select your bank statement file and then click the Open button.

 

8.Verify that the correct file is displayed and then click the Import button.

 

9. The Statement Import Report displays for you to review. There are options to print or export this report. Click the Close Report button to return to the Reconciliation page.

NOTE: Notice there are separate pages for the "cleared" and "not cleared" transactions.

 

10. When you return to the Reconciliation page, the "cleared" items from the import are automatically checked.

 

11. The other way to mark an item as cleared is to reconcile one item at a time using the fields at the top of the page. Enter an Item #, an Amount, and then press the Reconcile Item button.

NOTE: The Plus key can be used to navigate out of the Item # and Amount fields.

 

12. Click the Apply and Finish Later button if you are not finished reconciling your bank statement. (For example, you may have some service charge transactions to enter). Click the Finish button if all items have been reconciled to your bank statement.

NOTE: Clicking the Cancel link exits the page without saving any of your reconciliation changes.

 

 

Enter a Transaction

In some circumstances, there are charges from the bank that need to be entered into your Financials. The following steps show you how to enter a service charge transaction.

 

1. From the Bank Account Management menu, select Enter -> Transaction.

 

2. Enter the Date and Description for the transaction.

 

3. Under the Details tab, enter the Account, Description, and either a Deposit or a Charge.

NOTE: This is not like a journal entry where the Debits and Credits must balance. Here, you simply enter the amounts as either a Deposit or a Charge. When the transaction is processed to the General Ledger, the selected bank account is used to balance out the difference between the Deposits and Charges so that a balanced journal entry is created.

 

4. Click the Update button when you are finished entering the transaction.

 

5. The Transactions page appears. Select the transaction by clicking the check box next to it.

 

6. Click the Transaction Edit Report button to view or print the selected transactions.

 

7. Click the Post Transactions button to post this transaction.

 

8. Review the Post Transactions report and verify that the Posting Date is correct. Click the Finalize Post button when you are finished.

 

9. A window appears for you to verify that the Fiscal year, Period, and Date are correct. Click the OK button to continue.

 

 

Finish Reconciling your Statement

 

1. From the Bank Account Management menu, Select Manage -> Bank Statements.

 

2. Click the Edit  icon next to the statement you are working on.

 

3. Verify that the Statement Date and Statement Ending Balance is correct and then click the OK button.

 

4. Select the Service Charge transaction and any other reconciled items for that statement by clicking the check boxes next to those items.

 

5. Review the Reconcile to Bank Statement and the Reconcile to General Ledger boxes at the bottom of the page. Verify that the Statement Date and the Statement Period are correct for the statement you are reconciling.

NOTE: In this example you can see the General Ledger is out of balance by the amount of the service charge transaction that was processed because the journal for that transaction has not been posted.

 

6. Click the View Reconciliation Report button.

 

7. Review the reports that display. The Bank Statement Current Summary lists the outstanding items. The Cleared Items report should match your bank statement. The Outstanding Items report lists any uncleared items with a recap at the end of the report showing if the statement is balanced to the General Ledger. You may want to print and attach these reports to your bank statement and file for safe keeping. When finished, click the Close Report button.

 

8. Back on the Reconciliation page, click on either the Notes or Attachments tabs for options to add any notes or attachments. For example, you may want to attach an electronic copy of your bank statement.

 

9. Review the reconciled items and the Reconcile boxes at the bottom. When you are ready to close the reconciliation for this statement, click the Update button.

 

10. The statement can still be accessed and changes can be made to the statement after clicking the Update button. However, you will have a Finalized? check box appear after you select to view this statement again. This is an indicator to you that the statement has already been finalized.

 

 

 

 

Compiled on 6/22/2018 8:21:40 AM